WIL, Japanese Topy form JV for car wheels

TVS Group firm Wheels India Ltd (WIL) and Japan-based Topy Industries have forged a strategic partnership in the passenger car steel wheels business in India. Topy will acquire a 26 per cent stake in WIL Car Wheels Ltd (WCWL), a wholly-owned subsidiary of WIL.

Under the deal, the entire passenger car steel wheel business carried out at WIL plants in Padi, Chennai, and Bawal, Haryana will be transferred to the new company, on a slump sale basis. The combined capacity of the two factories is about 6-6.5 million wheels a year. Topy is expected to make a total investment of Rs 80-90 crore in WCWL.

The passenger car steel wheels business reported a turnover of Rs. 224.30 crore in FY 2017.

The JV WIL Car Wheels Ltd will invest further in capacity and is looking to establish a new factory in Gujarat, where Maruti, Ford and Tata are likely to be its key customers, at an investment upwards of Rs.50 crore.

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